In a recent webcast we explored how globalization has increased currency risk and posed new challenges for investment managers. 

Given an increasing portion of revenue that many companies harvest from multiple countries, managers must make additional considerations when monitoring portfolio risk.

The emphasis of discussion came from the headlines: How are firms responding to the European sovereign debt crisis? Furthermore, how can they control their currency exposure in this environment?

View the full recording of the webcast. You will need to enter your business email address.

A similar discussion will be occuring at both our FactSet Investment Process Symposium in the U.S. and in Europe. We encourage our clients to join us at those events. 

Below, we briefly summarize some of the main themes contained in that talk. 

• If you don't control currency exposure, you're held ransom by it
• Volatility in general runs up when fear increases
• An exposure-hedged portfolio will experience the least losses, in our model, if one or more country leaves the euro
• Most people focus on factor, idiosyncratic risk, and other types rather than currency risk
• One can stress test various countries leavnig the euro due to interest rate parity relationships

 
For any additional questions on our presentation, please contact us directly at sales@factset.com.

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